Southwestern Public Service Company v. Ridge Renewables, LLC

CourtCourt of Appeals of Texas
DecidedJuly 21, 2025
Docket07-23-00421-CV
StatusPublished

This text of Southwestern Public Service Company v. Ridge Renewables, LLC (Southwestern Public Service Company v. Ridge Renewables, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southwestern Public Service Company v. Ridge Renewables, LLC, (Tex. Ct. App. 2025).

Opinion

In The Court of Appeals Seventh District of Texas at Amarillo

No. 07-23-00421-CV

SOUTHWESTERN PUBLIC SERVICE COMPANY, APPELLANT

V.

RIDGE RENEWABLES, LLC, APPELLEE

On Appeal from the 64th District Court Hale County, Texas Trial Court No. A43616-2012, Honorable Danah L. Zirpoli, Presiding

July 21, 2025 MEMORANDUM OPINION Before QUINN, C.J., and PARKER and DOSS, JJ.

Southwestern Public Service Company appeals from a judgment awarding Ridge

Renewables, LLC more than $1 million for bad-faith trespass. SPSC raises five issues

on appeal. However, this case turns on whether Ridge met its summary judgment burden

on two threshold questions: Did Ridge conclusively prove the original lease’s property

description violates the statute of frauds? And, did Ridge conclusively prove SPSC’s wind

lease rights expired in 2017? We answer both questions “No.” We therefore reverse the

judgment and remand for further proceedings. OVERVIEW

This dispute centers on competing claims to wind energy development rights on a

256-acre tract in Hale County, Texas. The jury’s substantial damages award to Ridge

followed a hotly contested trial. But the jury never decided who held valid rights to harvest

the wind. That answer—which formed the basis for the damages award—was

determined as a matter of law when the trial court granted Ridge’s traditional motion for

summary judgment and held that SPSC committed bad-faith trespass.

This case illustrates a fundamental principle of summary judgment practice: the

moving party must conclusively establish every element of its claim as a matter of law.

Here, because the evidence was not conclusive, we reverse and remand.

BACKGROUND

In December 1989, Glendale King and his wife Barbara purchased 256 acres in

Hale County, Texas. King became the sole owner after Barbara’s death.

The Original Wind Lease and Property Conveyance

On August 24, 2010, King entered into a Wind and Easement Lease Agreement

with Hale County Wind Farm, LLC. The lease’s property description, which Ridge

challenges as inadequate under the statute of frauds, appears in Exhibit A:

Exhibit A

To

Hale County Wind Farm, LLC Memorandum of Lease

Glendale King- 100% 2 All that real property located in Hale County, Texas containing 256 acres, more or less, described as follows:

Tract 1

S/PT of E ½ of section 58, Block R, Abstract AB 1695, Hale County, Texas being 256 acres.

The lease granted exclusive wind development rights with a Development Term ending

on the earlier of: (1) HCWF beginning to sell electrical energy, or (2) seven years from

the effective date (i.e., August 24, 2017). The lease provided for a potential two-year

extension of the Development Term if construction commenced before the 2017 deadline,

but stated that without timely construction, “this Lease shall expire and shall no longer be

in full force and effect.”

Five months later, in January 2011, King conveyed some interests in the property

to Kelly and Ronna Smalley. He reserved one-half of the mineral interests and retained

a life estate in all “royalties derived from the production of Wind Energy pertaining to the

Property” and the “right to lease the Property for Wind Energy production purposes.”

Under the contract, all wind rights would revert to the Smalleys on King’s death. The

deed entitled the Smalleys to receive payments for surface damages from wind

development.

Subsequent Amendments and Transfers

The lease rights underwent multiple transfers between 2010 and 2020, but two

developments are potentially crucial to this dispute. After Hale County Wind Farm

assigned its rights to Hale Community Energy, King and HCE executed a July 2015

amendment that modified the 2010 lease terms. The 2015 amendment expressly

3 replaced the entirety of the Development Term’s original expiration provisions but inserted

virtually identical language: (a) the date HCE begins selling electrical energy generated

by wind turbines, or (b) “the seventh (7th) anniversary of the Effective Date,” unless

construction timely commenced. The amendment defined “Effective Date” as July 30,

2015.1

Following HCE’s assignment to Hale Wind Energy, the Smalleys executed a

“Second Amendment” with Hale Wind Energy in October 2017, with an effective date of

August 23, 2017.2 The amendment, which King did not sign, purportedly extended the

Development Term to August 24, 2020, and replaced the original property description

with detailed metes and bounds.

SPSC acquired the lease rights through this chain of assignments and began

construction in June 2018. SPSC completed two wind turbines in June 2019 and began

producing electricity.

Ridge’s Claimed Interests and the Central Dispute

Ridge’s competing claim emerged in September 2020, after King executed a Wind

Deed and Conveyance to Ridge Renewables, LLC for $30,000. King corrected this

conveyance in March 2021. Ridge’s theory of ownership depends on King having

retained valid wind development rights throughout the intervening decade—rights that

1 The amendment defining “Effective Date” as July 30, 2015, creates one of the contract interpretation disputes central to this case. 2 HCE assigned its interest to Hale Wind Energy in December 2015. August 23, 2017 is one day before the original 2010 lease was slated to expire.

4 SPSC claims King had leased away through the 2010 agreement and subsequent

amendments.

King’s 2020 conveyance to Ridge birthed the central legal dispute in this case. If

SPSC holds valid lease rights originating from the 2010 agreement and its subsequent

amendments, then King granted the same wind development rights twice—first to SPSC’s

predecessors and then to Ridge. If, however, the 2010 lease violated the statute of frauds

or expired in 2017 as Ridge argues, then King retained the authority to convey these

rights to Ridge, potentially making SPSC’s operations a trespass.

The Lawsuit

Ridge filed suit against SPSC in December 2020. Ridge’s petition alleged that the

2010 wind lease expired on August 24, 2017, making SPSC’s continued operation of wind

turbines an unlawful trespass. Ridge sought both monetary relief—damages for trespass,

unjust enrichment, and money had and received—and equitable remedies including

injunctive relief, declaratory judgment, and trespass to try title.

In January 2022, Ridge filed a traditional motion for partial summary

judgment seeking five declaratory rulings that would establish its superior rights

and SPSC’s liability:

• Ridge holds exclusive rights to develop wind energy on the property, to lease those rights for development, and to receive all associated revenues;

• The 2010 wind lease either violated the statute of frauds or terminated by its own terms on August 24, 2017;

• The 2017 “Second Amendment” between Hale Wind Energy and the Smalleys carried no legal effect; 5 • SPSC’s wind operations constitute ongoing bad-faith trespass, entitling Ridge to damages; and

• The Second Amendment and a 2018 assignment (from Hale Wind Energy to the predecessor of SPSC) create unlawful clouds on Ridge’s title.

Ridge’s summary judgment motion advanced two alternative theories, both

designed to establish that King retained wind development rights until his 2020

conveyance to Ridge. First, Ridge argued that the 2010 lease violated the statute of

frauds because its property description was inadequate.

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Southwestern Public Service Company v. Ridge Renewables, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southwestern-public-service-company-v-ridge-renewables-llc-texapp-2025.